LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 11, 2001 TO: Honorable Robert Junell, Chair, House Committee on Appropriations FROM: John Keel, Director, Legislative Budget Board IN RE: HJR66 by Isett (Proposing a constitutional amendment concerning the restriction on the rate of growth of appropriations.), As Introduced ************************************************************************** * No fiscal implication to the State is anticipated, other than the * * cost of publication. * * * * The cost to the state for publication of the resolution is $80,000. * ************************************************************************** Currently, Article VIII, Section 22, Texas Constitution, limits the biennial growth of certain appropriations to the estimated rate of growth of the state's economy. The current limit applies only to appropriations from state tax revenue not dedicated by the constitution. The resolution proposes a constitutional amendment which, if adopted, would limit the biennial growth of appropriations in the General Appropriations Act from all state revenue sources, except federal funds, to the estimated rate of growth of total personal income in the state. Currently, the appropriations limit for a subsequent biennium can increase or decrease as a result of changes in estimated appropriations for the then current biennium. The proposed amendment would allow only net decreases in estimated appropriations to affect the appropriations limit for the subsequent biennium. Under current law, the legislature, after adopting a resolution to exceed the limit by a majority vote in each house, may make appropriations in excess of the limit. The proposed amendment would require that a resolution to exceed the limit receive and a two-thirds vote of each house. Under current law, bills making appropriations are sent to the Comptroller for certification under the Article III, section 49a, "pay as you go" constitutional limit, but Comptroller certification of compliance with the Article VIII limit is not required. Under the proposed amendment, the Comptroller certification of compliance with both the "pay as you go limit" and the Article VIII limit would be required. The amended Article VIII limit would first apply to appropriations for the 2004-05 biennium. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 304 Comptroller of Public Accounts, 307 Secretary of State LBB Staff: JK, SD, RS